Foran Mining — Investor Presentation (January 2013)
24 slides from Foran Mining's investor presentation, January 2013
Slide 1: Advancing a major undeveloped Canadian base metal deposit
Advancing a major undeveloped Canadian base metal deposit January 2013 www.foranmining.com
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains "forward-looking information" (also referred to as "forward looking statements") which may include, but are not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects
Slide 3: 5 Reasons to Invest in Foran
5 Reasons to Invest in Foran Management Solid team with a shareholder depth of base – mining industry industry experience executives Resource McIlvenna Bay: growth & 100% ownership discovery of a large base potential metal deposit Superior project location & existing infrastructure 3
Slide 4: Management & Directors
Management & Directors Management Board of Directors Patrick Soares (BSc (Hons) PGeo) - President, CEO, & Darren Morcombe, Chairman Director Founder of private investment company Springtide 30 years’ experience in the mining industry (incl. Sutton, EuroZinc, Capital Pty. Ltd., former Chairman and ma
Slide 5: Capital Structure
Capital Structure 77.2 M 3.9 M 4.5 M 85.6 M I&O Warrants Options Fully Diluted Ownership Recent Financing (Aug. 30/12) >20% Institutional $3.3M in Units at $0.58 17% Management $1.7M in Flow-Through at $0.65 11% Pierre Lassonde 5% Corporate Share Price & Capitalization Treasury (Sept. 30/12) Recent:
Slide 6: Key Project – McIlvenna Bay
Key Project – McIlvenna Bay Large zinc-copper-gold-silver deposit Ownership: 100% Foran; 2 small royalties Excellent location - Saskatchewan, Canada: safe, stable, pro-mining province Top 10 Fraser Institute-rated jurisdiction AAA Credit Rating Excellent access & infrastructure: 65 km west of Flin F
Slide 7: The Case For Zinc
The Case For Zinc 525 loss from 2011; ’000 tonnes Recent events impacting global zinc supply: 450 Significant depletion due to mine 375 Closures closures & contractions, including Contractions 300 Century, Brunswick & Lisheen Slowdown in the advancement of 225 potential new zinc mines 150 75 18 mill
Slide 8: Zinc E&D Comparables
Zinc E&D Comparables $0.04 The Foran Advantage: 100% ownership Safe, mining-friendly jurisdiction $0.03 Close to major mining centre with extensive infrastructure (road/rail/power) Large zinc-rich resource EV/lb. ZnEq $0.02 Exploration upside $0.01 $0.00 Source: Stockwatch; company websites; as at J
Slide 9: Community Involvement
Community Involvement Foran has established a positive relationship with First Nations & other stakeholders in the area Foran continues to engage & involve local stakeholders Contractors & employees hired from local Peter Ballantyne Cree Nation (PBCN) communities Canada North Environmental Services
Slide 10: Regional Mining Camps
Regional Mining Camps The next major Canadian VMS camp? 10
Slide 11: VMS Deposits
VMS Deposits Volcanogenic Massive Sulphide (“VMS”) deposits form from metal-rich brines deposited on & below the seafloor Major source of base metals; gold & silver by-products Form in clusters – giving rise to VMS mining camps black smoker Zn-Cu-Au-Ag Zn-Ag Zn-Ag Cu-Au Cu-Au Massive to Semi- Massiv
Slide 12: VMS Deposit Size Comparison
VMS Deposit Size Comparison 62.5 30 VMS deposits form in clusters 25 Majority of the deposits in each VMS cluster are 3-5 Mt, with potential for 1-2 large (+20Mt) to 20 very large (+50Mt) deposits Deposit Size McIlvenna Bay is a large VMS deposit, with 12Mt (Mt) 15 (indicated), 10Mt (inferred) & gro
Slide 13: VMS Camp Size Comparison
VMS Camp Size Comparison VMS deposits & occurrences on Foran’s >43,000 hectare land package compare favourably to the footprint of World Class VMS Camps Sources: Sangster (1980), Galley et al. (2007); dashed lines show approximate limit of regional scale-alteration; The McIlvenna Bay Deposit resourc
Slide 14: McIlvenna Bay – Deposit Overview
McIlvenna Bay – Deposit Overview Large Zinc-Copper-Gold-Silver VMS deposit, 3 styles of mineralization: Lens 2 & 3: zinc-rich massive sulphides Upper West Zone (UWZ): zinc-copper-rich massive sulphides Copper Stockwork Zone (CSZ): copper-rich stockwork Top of deposit lies within 30m of surface, belo
Slide 15: Recent Advancements
Recent Advancements Resource Definition: Deposit Drilling • 17,000m (43 DDH) drilled in 2011-2012 – PEA-level drilling completed 2012 • 70,000m (141 DDH) drilled from 1988 to 2008 – relogging & sampling completed Q3/12 Mineral Resources • First NI 43-101 CSZ resource completed Q4/11 (includes 1st 5,
Slide 16: Mineral Resources
Mineral Resources1 McIlvenna Bay 2011 Global Resource (includes 2011 & 2006 Resources shown in the tables below) Category Tonnes Cu Au Zn Ag CuEq ZnEq (kt) (%) (g/t) (%) (g/t) (%) (%) Indicated 12,070 1.16 N/A 3.69 19 2.50 8.21 Inferred 9,570 1.07 N/A 3.86 19 2.42 7.96 2011 Resource, Copper Stockwor
Slide 17: Metallurgy
Metallurgy Positive results from PEA-level metallurgical testwork completed Q2/12 Zinc, copper & bulk concentrates amenable to conventional grinding-flotation circuits Coarse sulphides - moderate hardness (work indices: 11.6 to 16.1 kWh/t) Low deleterious element concentrations CSZ Copper Concentrat
Slide 18: Regional Exploration
Regional Exploration 2011 & 2007 VTEM - TMI Foran Property Non-Foran Property VMS deposits occur in clusters - Excellent VMS Mineralization: potential for additional McIlvenna Bay discoveries Past Producing Mine Showing/Occurrence 43,000 ha land position McIlvenna Bay deposit found by drill testing
Slide 19: Looking Ahead
Looking Ahead Major milestones for 2013 on the road to production at McIlvenna Bay: Continuing to engage & involve local stakeholders Updating McIlvenna Bay global resource (Q1/13) Winter 2013 Drill Program Underway (H1/13): 2,000m to upgrade resource – looking ahead to feasibility level studies 5,0
Slide 20: Contacts
Contacts Patrick Soares Fiona Childe President & CEO VP, Corporate Development 904-409 Granville Street, 2500-120 Adelaide Street West Vancouver, BC, V6C 1T2 Toronto, ON, M5H 1T1 ir@foranmining.com 416-847-7310 20
Slide 21: Appendices
Appendices nn co -www.foranmining.com
Slide 22: McIlvenna Bay Long Section
McIlvenna Bay Long Section 22
Slide 23: McIlvenna Bay Resource Footnotes
McIlvenna Bay Resource Footnotes 1 Effective date October 28, 2011; CIM definitions were followed for Mineral Resources; The 2011 and 2006 Resources are cumulative; CuEq = copper equivalent; NSR = Net Smelter Return. 2 The 2011 Resource is estimated based on 143 drill holes and a cut-off grade 1.10%
Slide 24: McIlvenna Bay Metallurgy
McIlvenna Bay Metallurgy Overall Metallurgical Response locked cycle testing of composite samples Copper Stockwork Zone (1o grind of 100 µm K80, regrind of 35 µm K80) Assay Distribution Product Mass Cu Zn Ag Au Cu Zn Ag Au (%) (%) (%) (g/t) (g/t) (%) (%) (%) (%) Feed 100 1.57 0.16 8 0.38 100 100 100